T‑Mobile US, Inc. reported fourth‑quarter 2025 results that surpassed analyst expectations on revenue and adjusted earnings per share (EPS). Total revenue rose 11.3 % year‑over‑year to $24.33 billion, while adjusted EPS climbed to $2.14, beating the consensus estimate of $2.04 by $0.10. The company added 2.4 million postpaid customers, including 962,000 new postpaid phone subscribers and 558,000 broadband net additions, and net postpaid account additions reached 261,000. Service revenue, the core driver of the top‑line growth, increased to $18.7 billion, up 10 % from the same period a year earlier.
The revenue lift was largely driven by the postpaid and broadband segments. Postpaid phone revenue grew 9.5 % as the company continued to win market share in the highly competitive U.S. wireless market, while broadband revenue expanded 12 % thanks to strong demand for 5G‑enabled home internet. The mix shift toward higher‑margin broadband and the continued success of the “Digital First” pricing strategy helped offset the modest decline in legacy postpaid phone net additions, which fell slightly below the 1.0 million target set for the quarter.
Adjusted EPS beat expectations because of disciplined cost management and a favorable mix of high‑margin broadband and postpaid services. The company’s operating margin expanded to 9.9 % from 9.5 % a year earlier, reflecting lower network and marketing expenses relative to revenue growth. However, GAAP diluted EPS fell to $1.88, missing the consensus estimate of $2.03 by $0.15. The GAAP miss was driven by a one‑time restructuring charge of $120 million related to the integration of the UScellular acquisition and a $45 million charge for network‑upgrade capital expenditures that were not fully captured in the adjusted metric.
Management guided for 2026 with a net postpaid account addition range of 900,000 to 1.0 million, core adjusted EBITDA of $37.0 billion to $37.5 billion, and a revenue outlook of $24.18 billion to $24.27 billion for the year. The guidance signals confidence in sustaining customer growth and margin expansion, but the forward‑looking free‑cash‑flow guidance was slightly below analyst expectations, reflecting cautious optimism amid competitive pricing pressure and ongoing network investment. The company also reiterated its commitment to returning capital to shareholders, having repurchased $14.0 billion in shares during 2025.
The market reacted with a pre‑market decline of roughly 4 % as investors weighed the GAAP EPS miss and the softer‑than‑expected postpaid phone net additions. Analysts noted that while the adjusted EPS beat was encouraging, the GAAP miss and the forward guidance for free cash flow tempered enthusiasm. CEO Srini Gopalan emphasized the company’s “winning formula” and confidence in its network perception gains, digital transformation, and simplification initiatives, framing the results as a proof point of the strategy’s effectiveness.
T‑Mobile’s performance underscores its continued leadership in network quality, as recognized by J.D. Power and Ookla, and its ability to grow high‑margin broadband revenue. The company’s strategic acquisitions—Lumos, UScellular, and Metronet—have expanded its customer base and spectrum assets, while the ongoing digital transformation and network‑integrated AI platform position it for future ARPU gains. The earnings beat, coupled with a cautious outlook, suggests that T‑Mobile remains a competitive force in the U.S. wireless market, but investors will monitor the company’s ability to translate network investments into sustainable profitability and to maintain momentum in a pricing‑sensitive environment.
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